My lender approved my short sale but they are only allowing 3% seller concessions. The buyer is insisting on getting 6% concession or will walk away. The lender does not allow me the seller to assist in closing costs with cash or promissory note at settlement. I am trying to find a way to get that missing 3%. We initially thought about reducing my realtor's commission and transfer it to closing costs as realtor's concession. Then I would pay my agent outside but my agent says that is against the law and her realtor will not allow it. So we are stuggling to find ways to get that missing 3%. Some ideas we thought of are:
- ask the buyers to increase the loan amount and roll the extra 3% in there. They don't want to do it.
- ask both realtors to reduce their commissions but the buyers' agent does not want to give up more than $1000. That's too little.

I want to help but I am tied by the lender's requirements. If anyone can think of a solution, please let me know. Thanks for your feedback.
 
Posted by T P on 01/06/2008 04:06 PM   Comments (1)  
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1 Comments on What to do when lender limits seller concessions in a short sale?

JAN
12
2008

I it possible to write a note for 3% payable to the buyer on day of closing and outside of seller HUD statement and if necessary place on the buyer HUD. The foreclosing lender doe not generally get the buyer's HUD, as I understand it.

Can you make the note payable for clean up, debris removal, painting services etc. which is work the buyers will do probably.

We do realtor concessions all the time... we just start with a 7% commission and then after 2 or 3 % concessions, the agents get what they planned to get, and the differential went to the lien,concession,HOA due or whatever. The trick then is to get the lender to not say anything about the ceiling on the RE Commission in their payoff approval letter and limit their wording to the total net to them...

I'm curious how much cash the buyer is coming in with? If a bunch, then what is the point of the concession? Can you just reduce the price?

9:57pm • #1


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T P

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